For Individual Clients

Calculation of interests

Attention! Loan interest is calculated at the nominal interest rate. The latter shows the annual interest accrued to the outstanding loan principle.

The amount of interest depends on the annual nominal interest rate and method of loan repayment.

The loan may be repaid by one of the methods below:

  • Differentiated/repayment of principal in equal portions in which case monthly payments consist of equal principal amounts and varying interest. As a result of reducing the interest, the amount of your monthly payments decreases each month.
  • Annuity/fixed monthly installments, where the monthly payment throughout the repayment period remains the same and consists of a portion of loan and a portion of interest.
  • Mixed: the client may choose an individual repayment schedule based on the seasonality of cash flows, provided that the amount of principal repaid each year makes at least 5% of contractual amount in case of loans for purchase/renovation/construction of residential and commercial property and investment loans.

If you choose to repay the loan by the 2nd method, the total amount of payable interest will be higher than in the 1st case.
The 2nd method, however, allows you planning your expenses, because you know the exact amount you’re going to pay each month.

If you repay your loan by differentiated method, the amount of monthly payment shall be calculated according to the following formula:

R = m / n + m * r % / 365 * o, where
R is your monthly payment
m is the loan principal
n is the loan term expressed in months
r is the annual interest rate
օ is the number of days in one month


If you repay your loan by annuity, the amount of monthly payment shall be calculated by the following formula:

R = P x r / (1 – 1/(1 + r) n), where

R is your monthly payment
P is the loan amount
n is total number of loan repayments throughout the whole loan term (number of months)
r is a monthly interest rate which is equal to 1/12 of the annual interest rate specified in the loan agreement at the moment of loan disbursement
The amount of monthly payments is rounded to one decimal place.


The outstanding loan is calculated according to the following formula:

Pt = R x ((1 – 1/(1 + r) n) / r, where

Pt is the actual loan outstanding by the end of the term
R is your monthly repayment
t is the number of repayments due by the end of the loan term (number of months)
r is a monthly interest rate which is equal to 1/12 of the annual interest rate specified in the loan agreement at the moment of loan disbursement


Interest Calculation. Representative Example.
Principal loan amount: AMD 20,000,000
Annual interest rate: 14%
Loan term: 120 months
Monthly payment in case of repayment by annuity will make AMD 310,533.
Daily interest will make 20,000,000*14/100/365=7,671 AMD
.


Updated 10.01.2017, 11:45

Services for Individuals

  
HEAD OFFICE

2 Vazgen Sargsyan Street, Yerevan 0010,RA

Tel.: +37410 56 11 11

USA:

+1 888 802 5352

UK:

+448000903191

Dear visitor,
If you find any discrepancies in the website materials in Armenian, English and Russian languages, or incomplete materials in Russian and English languages, please consider Armenian version as prevailing.
 
Ameriabank CJSC does not bear any responsibility for the inaccuracy of information on the linked web sites, nor does it accept any responsibility for the advertisements therein or possible consequences arising out of use of information provided on the linked web-sites by the third parties.
© 2007-2017. All rights reserved.